Ashford Trust Reports Fourth Quarter And Year End 2015 Results

6.8% RevPAR Increase for All Hotels for the Fourth Quarter

Adjusted EBITDA Increased 31%

Adjusted Funds From Operations per Share Increased 53%

Hotel EBITDA Margin Increased 112 bps

Feb 25, 2016, 16:41 ET from Ashford Hospitality Trust, Inc.

DALLAS, Feb. 25, 2016 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("the Company" or "Ashford Trust") today reported financial results and performance measures for the fourth quarter ended December 31, 2015. The performance measurements for Occupancy, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Hotel EBITDA are comparable assuming each of the hotel properties in the Company's hotel portfolio as of December 31, 2015 were owned as of the beginning of each of the periods presented.  Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2015, with the fourth quarter ended December 31, 2014 (see discussion below).  The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

OVERVIEW

  • Opportunistic focus on upper-upscale, full-service hotels
  • Targets moderate debt levels of approximately 55 – 60% net debt/gross assets
  • Highly-aligned management team and advisory structure
  • One of the highest long-term total shareholder returns in the industry
  • Attractive dividend yield of approximately 9%

FINANCIAL AND OPERATING HIGHLIGHTS

  • RevPAR for all hotels increased 6.8% during the quarter
  • RevPAR for all hotels not under renovation increased 7.3% during the quarter
  • Adjusted EBITDA increased $22.0 million or 31%
  • Hotel EBITDA Margin increased 112 basis points
  • Adjusted funds from operations (AFFO) was $0.26 per diluted share for the quarter as compared with $0.17 from the prior-year quarter representing an increase of 53%
  • The Company's common stock is currently trading at an approximate 9% dividend yield
  • Subsequent to year-end, on January 25, 2016, the Company announced that it completed the refinancing of three mortgage loans with existing balances of approximately $268 million with a new loan totaling $375 million, resulting in excess proceeds of approximately $81 million after closing costs and reserves
  • Capex invested in the quarter was $60.2 million, bringing the full-year total to $175.2 million

CAPITAL STRUCTURE At December 31, 2015, the Company had total assets of $5.0 billion in continuing operations.  As of December 31, 2015, the Company had $3.9 billion of mortgage debt in continuing operations. Ashford Trust's total combined debt had a blended average interest rate of 5.1%. 

Subsequent to year-end, on January 25, 2016, the Company announced that it completed the refinancing of three mortgage loans with existing balances of approximately $268 million. The previous loans that were refinanced included: the $91 million UBS 2 loan, the $103 million Merrill 2 loan and the $74 million Merrill 7 loan. The new loan totals $375 million and resulted in excess proceeds of approximately $81 million after closing costs and reserves. The new loan is interest only and provides for a floating interest rate of LIBOR + 4.87%.  The next hard debt maturity for the Company is in April 2017.  

PORTFOLIO REVPAR As of December 31, 2015, the Ashford Trust portfolio consisted of direct hotel investments with 132 properties classified in continuing operations.  During the fourth quarter of 2015, 119 of the Company's hotels included in continuing operations were not under renovation.  The Company believes reporting its operating metrics for the hotels in continuing operations on a comparable total basis (all 132 hotels) and comparable not under renovation basis (119 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its portfolio.  Details of each category are provided in the tables attached to this release.

  • Comparable RevPAR increased 6.8% to $105.94 for all hotels on a 4.2% increase in ADR and a 2.5% increase in occupancy
  • Comparable RevPAR increased 7.3% to $107.21 for hotels not under renovation on a 4.2% increase in ADR and a 3.0% increase in occupancy

HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS The Company believes year-over-year Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons.  Given the substantial seasonality in the Company's portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin for the current and certain prior-year periods based upon the number of hotels in the Company's portfolio as of the end of the current period.  As the Company's portfolio mix changes from time to time so will the seasonality for Comparable Hotel EBITDA and Comparable Hotel EBITDA Margin.  The details of the quarterly calculations for the previous four quarters for the 132 hotels are provided in the table attached to this release.

REFINED SALES PROCESS FOR SELECT-SERVICE HOTEL PORTFOLIO On January 25, 2016, the Company announced that it is no longer marketing the 24-hotel select-service portfolio as a single portfolio, but will instead pursue the sale of these assets in smaller groups and individually. Further, the Company will pursue the opportunistic sales of its other 38 non-core, select-service hotels over time.  The refined sales process in the form of smaller portfolios and/or individual assets is expected to garner higher values in the current market environment.

STRATEGY REFINEMENTS Ashford Trust is reaffirming its previously announced strategy refinements as follows:

  • The Company will focus on acquiring and owning upper-upscale, full-service hotels
  • The Company is not planning nor expects any future platform spinoffs
  • The Company will continue to target a net debt to gross assets ratio of 55% - 60%
  • The Company will continue to target cash and cash equivalents at a level of 25% - 35% of its total equity market capitalization for the purposes of:
    • property-level and corporate-level working capital needs
    • as a hedge against a downturn in the economy or hotel fundamentals
    • to be prepared to pursue accretive investments or stock buybacks as those opportunities arise

COMMON STOCK DIVIDEND On December 10, 2015, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.12 per diluted share for the Company's common stock for the fourth quarter ending December 31, 2015, payable on January 15, 2016, to shareholders of record as of December 31, 2015. The Board also approved the dividend policy for 2016, during which the Company expects to pay a quarterly cash dividend of $0.12 per share, or $0.48 per share on an annualized basis, subject to quarterly review.

"Driven by the continued success of our revenue initiatives, we posted robust RevPAR growth during the fourth quarter which outperformed the broader industry and supported another quarter of strong EBITDA and AFFO performance," commented Monty J. Bennett, Ashford Trust's Chairman and Chief Executive Officer. "Closing on our recent refinancing increased our financial flexibility and improved our liquidity position as we continue to execute on our more simplified and distinct strategy of focusing on upper-upscale, full-service hotels to maximize value for our shareholders. We enter 2016 with a backdrop of favorable industry fundamentals and we will continue to focus on generating strong operating performance across our platform."

INVESTOR CONFERENCE CALL AND SIMULCAST Ashford Hospitality Trust, Inc. will conduct a conference call on Friday, February 26, 2016, at 11:00 a.m. ET.  The number to call for this interactive teleconference is (719) 325-2308.  A replay of the conference call will be available through Friday, March 4, 2016, by dialing (719) 457-0820 and entering the confirmation number, 4881188.

The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2015 earnings release conference call.  The live broadcast of Ashford Hospitality Trust's quarterly conference call will be available online at the Company's web site, www.ahtreit.com on Friday, February 26, 2016, beginning at 11:00 a.m. ET.  The online replay will follow shortly after the call and continue for approximately one year.

Substantially all of our non-current assets consist of real estate investments and debt investments secured by real estate.  Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time.  Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, and Hotel EBITDA.  FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us.  Neither FFO, AFFO, EBITDA, nor Hotel EBITDA represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions.  However, management believes FFO, AFFO, EBITDA, and Hotel EBITDA to be meaningful measures of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.

*  *  *  *  *

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels.

Follow Chairman and CEO Monty Bennett on Twitter at www.twitter.com/MBennettAshford or @MBennettAshford. 

Ashford has created an Ashford App for the hospitality REIT investor community.  The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford."

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward looking statements in this press release include, among others, statements about the Company's strategy and future plans.  These forward-looking statements are subject to risks and uncertainties.  When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements.  Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Trust's control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation:  general volatility of the capital markets and the market price of our common stock; changes in our business or investment strategy; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the market in which we operate, interest rates or the general economy; and the degree and nature of our competition.  These and other risk factors are more fully discussed in Ashford Trust's filings with the Securities and Exchange Commission.  EBITDA is defined as net income before interest, taxes, depreciation and amortization.  EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price.  A capitalization rate is determined by dividing the property's annual net operating income by the purchase price.  Net operating income is the property's funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues.  Hotel EBITDA flow-through is the change in Hotel EBITDA divided by the change in total revenues.  Hotel EBITDA Margin is Hotel EBITDA divided by total revenues.  Funds from operations ("FFO"), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures. 

The forward-looking statements included in this press release are only made as of the date of this press release.  Investors should not place undue reliance on these forward-looking statements.  We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

(unaudited)

December 31,

December 31,

2015

2014

ASSETS

Cash and cash equivalents

$        215,078

$        215,063

Marketable securities

-

63,217

Total cash, cash equivalents and marketable securities

215,078

278,280

Investments in hotel properties, net

4,419,684

2,128,611

Restricted cash

153,680

85,830

Accounts receivable, net of allowance of $715 and $241, respectively

40,438

22,399

Inventories

4,810

2,104

Note receivable, net of allowance of $7,083 and $7,522, respectively

3,746

3,553

Investment in Highland JV

-

144,784

Investment in Ashford Prime

-

54,907

Investment in Ashford Inc.

6,616

7,099

Investment in AIM REHE Fund

55,952

-

Deferred costs, net

3,847

1,618

Prepaid expenses

12,458

7,017

Derivative assets, net

3,435

182

Other assets

10,647

17,116

Intangible assets, net

11,343

-

Due from Ashford Prime, net

528

896

Due from affiliates

-

3,473

Due from third-party hotel managers

22,869

12,241

Total assets

$     4,965,131

$     2,770,110

LIABILITIES AND EQUITY

Liabilities:

Indebtedness, net

$     3,840,617

$     1,943,133

Accounts payable and accrued expenses

123,444

71,118

Dividends payable

22,678

21,889

Unfavorable management contract liabilities

3,355

5,330

Due to Ashford Inc., net

9,856

8,202

Due to related party, net

1,339

1,867

Due to third-party hotel managers

2,504

1,640

Intangible liabilities, net

16,494

-

Liabilities associated with marketable securities and other

-

6,201

Other liabilities

14,539

1,233

Total liabilities

4,034,826

2,060,613

Redeemable noncontrolling interests in operating partnership

118,449

177,064

Equity:

Preferred stock, $0.01 par value, 50,000,000 shares authorized:

Series A Cumulative Preferred Stock, 1,657,206 shares issued and outstanding at December 31, 2015 and December 31, 2014

17

17

Series D Cumulative Preferred Stock, 9,468,706 shares issued and outstanding at December 31, 2015 and December 31, 2014

95

95

Series E Cumulative Preferred Stock, 4,630,000 shares issued and outstanding at December 31, 2015 and December 31, 2014

46

46

Common stock, $0.01 par value, 200,000,000 shares authorized, 95,470,903 and 89,439,624 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively 

955

894

Additional paid-in capital

1,597,194

1,580,904

Accumulated deficit

(787,221)

(1,050,323)

Total stockholders' equity of the Company

811,086

531,633

Noncontrolling interest in consolidated entities

770

800

Total equity

811,856

532,433

Total liabilities and equity

$     4,965,131

$     2,770,110

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 Three Months Ended 

 Year Ended 

 December 31, 

 December 31, 

2015

2014

2015

2014

REVENUE

Rooms

$    271,584

$    150,898

$   1,059,012

$    640,325

Food and beverage

67,571

30,180

227,099

112,701

Other

13,297

6,904

48,699

26,958

Total hotel revenue

352,452

187,982

1,334,810

779,984

Advisory services revenue

-

1,458

-

10,724

Other

425

928

2,156

4,141

Total revenue

352,877

190,368

1,336,966

794,849

EXPENSES

Hotel operating expenses

Rooms

62,324

35,599

231,614

143,751

Food and beverage

44,449

20,323

153,340

77,653

Other expenses

109,960

59,816

405,896

254,495

Management fees 

13,028

7,507

49,394

31,125

Total hotel operating expenses

229,761

123,245

840,244

507,024

Property taxes, insurance and other

18,134

9,541

65,301

38,499

Depreciation and amortization

61,189

29,631

210,410

110,653

Impairment charges

(112)

(105)

19,511

(415)

Gain on insurance settlements

-

(5)

-

(5)

Transaction costs

402

9

6,252

625

Advisory services fee:

Base advisory fee

8,616

3,999

33,833

3,999

Reimbursable expenses

1,651

534

6,471

534

Non-cash stock/unit-based compensation

929

-

2,719

-

Corporate, general and administrative:

Non-cash stock/unit-based compensation

-

2,191

538

19,155

Other general and administrative

2,578

7,762

13,772

38,088

Total operating expenses

323,148

176,802

1,199,051

718,157

OPERATING INCOME

29,729

13,566

137,915

76,692

Equity in earnings (loss) of unconsolidated entities

2,253

(4,299)

(6,831)

2,495

Interest income

23

17

90

62

Gain on acquisition of Highland JV and sale of hotel properties

47

-

380,752

-

Other income (expense)

(2,597)

732

(864)

6,573

Interest expense, net of premiums

(47,752)

(27,250)

(168,834)

(107,300)

Amortization of loan costs

(5,773)

(1,689)

(18,680)

(7,202)

Write-off of loan costs and exit fees

(983)

-

(5,750)

(10,353)

Unrealized gain (loss) on marketable securities

-

3,486

127

(332)

Unrealized loss on derivatives

(999)

(420)

(7,402)

(1,100)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

(26,052)

(15,857)

310,523

(40,465)

Income tax expense

(75)

(446)

(4,710)

(1,266)

INCOME (LOSS) FROM CONTINUING OPERATIONS

(26,127)

(16,303)

305,813

(41,731)

Income (loss) from discontinued operations

-

(55)

-

33

Gain on sale of hotel properties, net of tax

-

-

599

3,491

NET INCOME (LOSS)

(26,127)

(16,358)

306,412

(38,207)

Loss from consolidated entities attributable to noncontrolling interest

22

260

30

406

Net (income) loss attributable to redeemable noncontrolling interests in operating partnership

4,113

2,166

(35,503)

6,400

NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

(21,992)

(13,932)

270,939

(31,401)

Preferred dividends

(8,491)

(8,491)

(33,962)

(33,962)

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$    (30,483)

$    (22,423)

$      236,977

$    (65,363)

INCOME (LOSS) PER SHARE – BASIC AND DILUTED

Basic:

Income (loss) from continuing operations attributable to common stockholders

$        (0.33)

$        (0.25)

$            2.43

$        (0.75)

Income from discontinued operations attributable to common stockholders

-

-

-

-

Net income (loss) attributable to common stockholders

$        (0.33)

$        (0.25)

$            2.43

$        (0.75)

Weighted average common shares outstanding – basic

94,012

89,589

96,290

87,622

Diluted:

Income (loss) from continuing operations attributable to common stockholders

$        (0.33)

$        (0.25)

$            2.35

$        (0.75)

Income from discontinued operations attributable to common stockholders

-

-

-

-

Net income (loss) attributable to common stockholders

$        (0.33)

$        (0.25)

$            2.35

$        (0.75)

Weighted average common shares outstanding – diluted

94,012

89,589

114,881

87,622

Dividends declared per common share:

$          0.12

$          0.12

$            0.48

$          0.48

Amounts attributable to common stockholders:

Net income (loss) attributable to the Company

$    (21,992)

$    (13,884)

$      270,939

$    (31,430)

Income from discontinued operations, net of tax

-

(48)

-

29

Preferred dividends

(8,491)

(8,491)

(33,962)

(33,962)

Net income (loss) attributable to common stockholders

$    (30,483)

$    (22,423)

$      236,977

$    (65,363)

 

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA 

 (in thousands) 

 (unaudited) 

 Three Months Ended 

 Year Ended 

 December 31, 

 December 31, 

2015

2014

2015

2014

 Net income (loss) 

$      (26,127)

$    (16,358)

$    306,412

$    (38,207)

 Loss from consolidated entities attributable to noncontrolling interest 

22

260

30

406

 Net (income) loss attributable to redeemable noncontrolling interests in operating partnership 

4,113

2,166

(35,503)

6,400

 Net income (loss) attributable to the Company 

(21,992)

(13,932)

270,939

(31,401)

Interest income

(23)

(18)

(90)

(63)

Interest expense and amortization of premiums and loan costs, net

53,496

28,908

187,396

114,709

Depreciation and amortization 

61,129

29,626

210,197

110,770

Income tax expense

75

446

4,710

1,278

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

(4,113)

(2,166)

35,503

(6,400)

Equity in (earnings) loss of unconsolidated entities

(759)

4,299

3,445

(2,495)

Company's portion of EBITDA of Ashford Inc.

846

(3,016)

828

(3,016)

Company's portion of EBITDA of Ashford Prime

-

2,494

7,640

11,643

Company's portion of EBITDA of Highland JV

-

21,803

11,982

95,444

 EBITDA available to the Company and OP unitholders 

88,659

68,444

732,550

290,469

Amortization of unfavorable management contract liabilities

(494)

(494)

(1,975)

(1,975)

Impairment charges

(112)

(105)

19,511

(415)

Gain on acquisition of Highland JV and sale of hotel properties

(47)

-

(381,351)

(3,503)

Non-cash gain on insurance settlements 

-

(5)

-

(5)

Write-off of loan costs and exit fees

983

-

5,750

10,353

Other (income) expense(1)

2,597

(732)

864

(6,573)

Transaction, acquisition and management conversion costs

796

1,683

12,348

4,856

Software implementation costs

-

45

-

320

Legal judgment and related legal costs

24

424

95

11,907

Unrealized (gain) loss on marketable securities

-

(3,486)

(127)

332

Unrealized loss on derivatives

999

420

7,402

1,100

Dead deal costs

203

-

770

-

Compensation adjustment related to modified employment terms

-

-

-

2,997

Non-cash stock/unit-based compensation

1,142

2,191

3,470

16,918

Company's portion of unrealized loss of AIM REHE Fund

(1,494)

-

3,386

-

Company's portion of adjustments to EBITDA of Ashford Inc.

468

3,427

3,652

3,427

Company's portion of adjustments to EBITDA of Ashford Prime

-

80

738

634

Company's portion of adjustments to EBITDA of Highland JV

-

(156)

-

(669)

 Adjusted EBITDA available to the Company and OP unitholders 

$        93,724

$      71,736

$    407,083

$    330,173

 NOTES: 

(1)

Other (income) expense, primarily consisting of net realized gain/loss on marketable securities in both periods, is excluded from Adjusted EBITDA.  

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO 

 (in thousands, except per share amounts) 

 (unaudited) 

 Three Months Ended 

 Year Ended 

 December 31, 

 December 31, 

2015

2014

2015

2014

 Net income (loss) 

$      (26,127)

$    (16,358)

$    306,412

$    (38,207)

 Loss from consolidated entities attributable to noncontrolling interest 

22

260

30

406

 Net (income) loss attributable to redeemable noncontrolling interests in operating partnership 

4,113

2,166

(35,503)

6,400

 Preferred dividends 

(8,491)

(8,491)

(33,962)

(33,962)

 Net income (loss) attributable to common stockholders 

(30,483)

(22,423)

236,977

(65,363)

Depreciation and amortization on real estate

61,129

29,579

210,197

110,465

Gain on acquisition of Highland JV and sale of hotel properties

(47)

-

(381,351)

(3,503)

Net income (loss) attributable to redeemable noncontrolling interests in operating partnership

(4,113)

(2,166)

35,503

(6,400)

Equity in (earnings) loss of unconsolidated entities

(759)

4,299

3,445

(2,495)

Impairment charges on real estate

-

-

19,949

-

Company's portion of FFO of Ashford Inc.

604

(3,252)

(19)

(3,252)

Company's portion of FFO of Ashford Prime

-

1,033

4,371

5,897

Company's portion of FFO of Highland JV

-

10,310

3,791

49,748

 FFO available to common stockholders and OP unitholders 

26,331

17,380

132,863

85,097

Write-off of loan costs and exit fees

983

-

5,750

10,353

Other impairment charges

(112)

(105)

(438)

(415)

Non-cash gain on insurance settlements 

-

(5)

-

(5)

Other (income) expense (1)

2,597

(732)

864

(6,573)

Legal judgment and related legal costs

24

424

95

11,907

Transaction, acquisition and management conversion costs

796

1,683

12,348

4,856

Unrealized (gain) loss on marketable securities

-

(3,486)

(127)

332

Unrealized loss on derivatives

999

420

7,402

1,100

Software implementation costs

-

45

-

320

Dead deal costs

203

-

770

-

Compensation adjustment related to modified employment terms

-

-

-

2,997

Company's portion of unrealized loss of AIM REHE Fund

(1,494)

-

3,386

-

Company's portion of adjustments to FFO of Ashford Inc.

(534)

2,558

(1,032)

2,558

Company's portion of adjustments to FFO of Ashford Prime

-

4

593

398

Company's portion of adjustments to FFO of Highland JV

-

(156)

-

(669)

 Adjusted FFO available to common stockholders and OP unitholders 

$        29,793

$      18,030

$    162,474

$    112,256

 Adjusted FFO per diluted share available to common stockholders and OP unitholders 

$            0.26

$          0.17

$          1.41

$          1.05

 Weighted average diluted shares 

113,498

108,562

115,366

107,243

 NOTES: 

(1)

Other (income) expense, primarily consisting of net realized gain/loss on marketable securities in both periods, is excluded from Adjusted FFO.  

 

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

SUMMARY OF INDEBTEDNESS

DECEMBER 31, 2015

(dollars in thousands)

(unaudited)

 Comparable 

 Comparable 

 Fixed-Rate 

 Floating-Rate 

 Total 

 TTM Hotel 

 TTM EBITDA 

Indebtedness

Maturity

Interest Rate

 Debt 

 Debt 

 Debt 

EBITDA(11)

 Debt Yield 

Morgan Stanley MIP - 5 hotels 

February 2016

LIBOR + 4.75%

$                      -

$            200,000

(1) (2)

$            200,000

$              23,395

11.7%

Morgan Stanley Pool A - 7 hotels 

August 2016

LIBOR + 4.35%

-

301,000

(2)

301,000

33,517

11.1%

Morgan Stanley Pool B - 5 hotels 

August 2016

LIBOR + 4.38%

-

62,900

(2)

62,900

6,986

11.1%

JPM Chase Marriott Fremont - 1 hotel 

August 2016

LIBOR + 4.20%

-

37,500

(2)

37,500

7,417

19.8%

Secured revolving credit facility - various 

October 2016

Base Rate (10)+ 2.00% or LIBOR + 3.00%

-

-

(9)

-

N/A   

N/A

BAML Pool 1 & 2 - 8 hotels 

January 2017

LIBOR + 4.95%

-

376,800

(2) (3)

376,800

43,843

11.6%

Cantor Commercial Real Estate Memphis - 1 hotel 

April 2017

LIBOR + 4.95%

-

33,300

(2)

33,300

4,127

12.4%

Column Financial - 24 hotels 

April 2017

LIBOR + 4.39%

-

1,070,560

(4)

1,070,560

111,619

10.4%

Wachovia 1 - 5 hotels 

April 2017

5.95%

110,302

-

110,302

16,899

15.3%

Wachovia 2 - 7 hotels 

April 2017

5.95%

120,671

-

120,671

17,152

14.2%

Wachovia 5 - 5 hotels 

April 2017

5.95%

99,144

-

99,144

14,446

14.6%

Wachovia 6 - 5 hotels 

April 2017

5.95%

150,860

-

150,860

17,857

11.8%

JPM Lakeway - 1 hotel 

May 2017

LIBOR + 5.10%

-

25,100

(2)

25,100

1,420

5.7%

BAML Le Pavillon - 1 hotel 

June 2017

LIBOR + 5.10%

-

43,750

(2)

43,750

4,060

9.3%

US Bank Indigo Atlanta - 1 hotel 

June 2017

5.98%

16,002

-

16,002

2,294

14.3%

Morgan Stanley - 8 hotels 

July 2017

LIBOR + 4.09%

-

144,000

(2)

144,000

14,118

9.8%

Morgan Stanley Ann Arbor - 1 hotel 

July 2017

LIBOR + 4.15%

-

35,200

(2)

35,200

3,762

10.7%

BAML W Atlanta - 1 hotel 

July 2017

LIBOR + 5.10%

-

40,500

(2)

40,500

3,974

9.8%

BAML Pool - 17 hotels 

December 2017

LIBOR + 4.87%

-

375,000

(7) (8)

375,000

48,208

12.9%

Morgan Stanley Boston Back Bay - 1 hotel 

January 2018

4.38%

98,016

-

98,016

14,794

15.1%

Morgan Stanley Princeton/Nashville - 2 hotels 

January 2018

4.44%

107,054

-

107,054

25,976

24.3%

NorthStar Gainesville - 1 hotel 

July 2018

LIBOR + 4.50%

-

21,200

(6)

21,200

2,539

12.0%

NorthStar HGI Wisconsin Dells - 1 hotel 

August 2018

LIBOR + 4.95%

-

12,000

(6)

12,000

1,908

15.9%

Omni American Bank Ashton - 1 hotel 

July 2019

LIBOR + 3.75% (5)

-

5,524

5,524

1,051

19.0%

GACC Gateway - 1 hotel 

November 2020

6.26%

98,420

-

98,420

16,331

16.6%

Deutsche Bank W Minneapolis - 1 hotel 

May 2023

5.46%

55,524

-

55,524

6,042

10.9%

GACC Jacksonville RI - 1 hotel 

January 2024

5.49%

10,529

-

10,529

1,431

13.6%

GACC Manchester RI - 1 hotel 

January 2024

5.49%

7,214

-

7,214

1,150

15.9%

Key Bank Manchester CY - 1 hotel 

May 2024

4.99%

6,745

-

6,745

978

14.5%

Morgan Stanley Pool C1 - 3 hotels 

August 2024

5.20%

67,520

-

67,520

8,598

12.7%

Morgan Stanley Pool C2 - 2 hotels 

August 2024

4.85%

12,500

-

12,500

2,232

17.9%

Morgan Stanley Pool C3 - 3 hotels 

August 2024

4.90%

24,980

-

24,980

3,418

13.7%

BAML Pool 3 - 3 hotels 

February 2025

4.45%

54,110

(3)

-

54,110

8,569

15.8%

BAML Pool 4 - 2 hotels 

February 2025

4.45%

24,147

(3)

-

24,147

3,116

12.9%

BAML Pool 5 - 2 hotels 

February 2025

4.45%

20,919

(3)

-

20,919

3,062

14.6%

Unencumbered hotels 

-

-

-

2,439

N/A

$         1,084,657

$         2,784,334

$         3,868,991

$            478,728

12.4%

Percentage 

28.0%

72.0%

100.0%

Weighted average interest rate 

5.43%

5.00%

5.12%

All indebtedness is non-recourse with the exception of the secured revolving credit facility.

(1) The interest rate on this mortgage loan is subject to a LIBOR floor of 0.20%.

(2) This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions. 

(3) On January 2, 2015, we refinanced our $145.3 million loan due July 2015 and our $211.0 million loan due November 2015 with a $376.8 million loan due January 2017 with an interest rate of LIBOR + 4.95%, a $54.8 million loan due February 2025 with a fixed interest rate of 4.45%, a $24.5 million loan due February 2025 with a fixed interest rate of 4.45%, and a $21.2 million loan due February 2025 with a fixed interest rate of 4.45%.  

(4) On March 6, 2015, we refinanced our $907.5 million loan due March 2015 with a $1,070.6 million loan due April 2017 with four one-year extension options.  The new loan provides for an interest rate of LIBOR + 4.39%.

(5) The interest rate on this mortgage loan which closed in July 2014 is subject to a LIBOR floor of 0.25% and changes to a 4.00% fixed rate after 18 months.

(6) This mortgage loan has two one-year extension options, subject to satisfaction of certain conditions.

(7) This mortgage loan has four one-year extension options, subject to satisfaction of certain conditions.

(8) On December 2, 2015, we refinanced our $91.1 million loan due December 2015, our $103.4 million loan due February 2016 and our $74.3 million loan due in February 2016 with a $375.0 million loan with a variable interest rate of LIBOR + 4.87%.

(9) Our borrowing capacity under our secured revolving credit facility is $100.0 million.  

(10) Base rate, as defined in the secured revolving credit facility agreement is the greater of (i) the prime rate set by Bank of America, (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1.0%.

(11) See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.  

 

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 INDEBTEDNESS BY MATURITY ASSUMING EXTENSION OPTIONS ARE EXERCISED 

 DECEMBER 31, 2015 

 (in thousands) 

 (unaudited) 

2016

2017

2018

2019

2020

 Thereafter 

 Total 

Secured revolving credit facility - various 

$            -

$              -

$              -

$              -

$              -

$                  -

$                  -

Wachovia 1 - 5 hotels 

-

107,351

-

-

-

-

107,351

Wachovia 2 - 7 hotels 

-

117,441

-

-

-

-

117,441

Wachovia 5 - 5 hotels 

-

96,491

-

-

-

-

96,491

Wachovia 6 - 5 hotels 

-

146,823

-

-

-

-

146,823

US Bank Indigo Atlanta - 1 hotel 

-

15,583

-

-

-

15,583

Morgan Stanley Boston Back Bay - 1 hotel 

-

-

94,226

-

-

-

94,226

Morgan Stanley Princeton/Nashville - 2 hotels 

-

-

103,106

-

-

-

103,106

Omni American Bank Ashton - 1 hotel 

-

-

-

5,168

-

-

5,168

Morgan Stanley MIP - 5 hotels 

-

-

-

200,000

-

-

200,000

Morgan Stanley Pool A - 7 hotels 

-

-

-

301,000

-

-

301,000

Morgan Stanley Pool B - 5 hotels 

-

-

-

62,900

-

-

62,900

JPM Chase Marriott Fremont - 1 hotel 

-

-

-

37,500

-

-

37,500

GACC Gateway - 1 hotel 

-

-

-

-

89,886

-

89,886

BAML Pool 1 & 2 - 8 hotels 

-

-

-

-

376,800

-

376,800

Cantor Commercial Real Estate Memphis - 1 hotel 

-

-

-

-

33,300

-

33,300

JPM Lakeway - 1 hotel 

-

-

-

-

25,100

-

25,100

BAML Le Pavillon - 1 hotel 

-

-

-

-

43,750

-

43,750

Morgan Stanley - 8 hotels 

-

-

-

-

144,000

-

144,000

Morgan Stanley Ann Arbor - 1 hotel 

-

-

-

-

35,200

-

35,200

NorthStar Gainesville - 1 hotel 

-

-

-

-

21,200

-

21,200

BAML W Atlanta - 1 hotel 

-

-

-

-

40,500

-

40,500

NorthStar HGI Wisconsin Dells - 1 hotel 

-

-

-

-

12,000

-

12,000

GACC Jacksonville RI - 1 hotel 

-

-

-

-

-

9,036

9,036

GACC Manchester RI - 1 hotel 

-

-

-

-

-

6,191

6,191

Key Bank Manchester CY - 1 hotel 

-

-

-

-

-

5,671

5,671

Morgan Stanley Pool C - 8 hotels 

-

-

-

-

-

90,889

90,889

BAML Pool 3 - 3 hotels 

-

-

-

-

-

44,160

44,160

BAML Pool 4 - 2 hotels 

-

-

-

-

-

19,707

19,707

BAML Pool 5 - 2 hotels 

-

-

-

-

-

17,073

17,073

Column Financial - 24 hotels 

-

-

-

-

-

1,070,560

1,070,560

Deutsche Bank W Minneapolis - 1 hotel 

-

-

-

-

-

47,711

47,711

BAML Pool - 17 hotels 

-

-

-

-

-

375,000

375,000

Principal due in future periods 

$            -

$    483,689

$    197,332

$    606,568

$    821,736

$     1,685,998

$     3,795,323

Scheduled amortization payments remaining 

16,138

16,196

6,644

6,970

6,914

20,806

73,668

Total indebtedness 

$    16,138

$    499,885

$    203,976

$    613,538

$    828,650

$     1,706,804

$     3,868,991

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS

(unaudited)

Three Months Ended

December 31,

Actual

Pre-acquisition

Comparable

Actual

Pre-acquisition

Comparable

Comparable

2015

2015

2015

2014

2014

2014

% Variance

ALL HOTELS:

Rooms revenue (in thousands)

$    270,519

$               2,158

$     272,677

$  148,904

$           106,115

$     255,019

6.92%

RevPAR

$      105.56

$             194.05

$       105.94

$      94.69

$             106.30

$         99.20

6.80%

Occupancy

72.66%

91.65%

72.75%

72.13%

69.10%

70.95%

2.53%

ADR

$      145.27

$             211.72

$       145.63

$    131.28

$             153.83

$       139.81

4.16%

Year Ended

December 31,

Actual

Pre-acquisition

Comparable

Actual

Pre-acquisition

Comparable

Comparable

2015

2015

2015

2014

2014

2014

% Variance

ALL HOTELS:

Rooms revenue (in thousands)

$ 1,053,576

$           110,947

$  1,164,523

$  628,451

$           463,715

$ 1,092,166

6.63%

RevPAR

$      114.25

$             112.52

$       114.08

$    102.30

$             114.62

$       107.08

6.54%

Occupancy

77.27%

72.66%

76.82%

76.25%

74.46%

75.56%

1.67%

ADR

$      147.85

$             154.87

$       148.49

$    134.16

$             153.94

$       141.71

4.79%

NOTES:

(1)

The above comparable information assumes the 132 hotel properties owned and included in the Company's operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. 

(3)

The above information does not reflect the operations of Orlando WorldQuest Resort.

Three Months Ended

December 31,

Actual

Pre-acquisition

Comparable

Actual

Pre-acquisition

Comparable

Comparable

2015

2015

2015

2014

2014

2014

% Variance

ALL HOTELS

NOT UNDER RENOVATION:

Rooms revenue (in thousands)

$    247,088

$               2,158

$     249,246

$ 134,001

$             97,972

$     231,973

7.45%

RevPAR

$      106.79

$             194.05

$       107.21

$     94.53

$             108.33

$         99.91

7.31%

Occupancy

73.30%

91.65%

73.38%

72.18%

69.72%

71.22%

3.03%

ADR

$      145.69

$             211.72

$       146.09

$   130.96

$             155.38

$       140.27

4.15%

Year Ended

December 31,

Actual

Pre-acquisition

Comparable

Actual

Pre-acquisition

Comparable

Comparable

2015

2015

2015

2014

2014

2014

% Variance

ALL HOTELS

NOT UNDER RENOVATION:

Rooms revenue (in thousands)

$    958,164

$           104,966

$  1,063,130

$  567,555

$           426,712

$     994,267

6.93%

RevPAR

$      115.45

$             114.01

$       115.30

$    102.30

$             116.42

$       107.93

6.83%

Occupancy

77.69%

73.07%

77.23%

76.43%

74.98%

75.85%

1.82%

ADR

$      148.59

$             156.04

$       149.29

$    133.86

$             155.27

$       142.30

4.92%

NOTES:

(1)

The above comparable information assumes the 119 hotel properties owned and included in the Company's operations at December 31, 2015, and not under renovation during the three months ended December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. 

(3)

The above information does not reflect the operations of Orlando WorldQuest Resort.

(4)

Excluded Hotels Under Renovation: 

Hilton Parsippany, Courtyard Alpharetta, Fairfield Inn Lake Buena Vista, Historic Inns of Annapolis, Residence Inn Evansville, Crowne Plaza Ravinia, Embassy Suites Austin, Embassy Suites Dulles, Embassy Suites Houston, Hilton Ft. Worth, Hilton Santa Fe, The Ashton, The Churchill

 

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 HOTEL EBITDA 

 (dollars in thousands) 

 (unaudited) 

 ALL HOTELS: 

 Three Months Ended 

December 31,

Actual

Pre-acquisition

Comparable

Actual

Pre-acquisition

Comparable

Comparable

2015

2015

2015

2014

2014

2014

 % Variance 

 REVENUE 

Rooms 

$    270,519

$                2,158

$    272,677

$   148,904

$            106,115

$    255,019

6.9%

Food and beverage 

67,547

374

67,921

30,157

37,610

67,767

0.2%

 Other 

13,037

311

13,348

6,769

6,547

13,316

0.2%

Total hotel revenue 

351,103

2,843

353,946

185,830

150,272

336,102

5.3%

 EXPENSES 

Rooms 

$      61,873

$                   428

$      62,301

$     35,003

$              24,312

$      59,315

5.0%

Food and beverage 

44,429

233

44,662

20,307

24,072

44,379

0.6%

Other direct 

5,386

87

5,473

3,704

1,650

5,354

2.2%

Other indirect  

98,713

856

99,568

52,575

43,574

96,149

3.6%

Management fees, includes base and incentive fees 

15,553

136

15,689

8,378

6,093

14,471

8.4%

Total hotel operating expenses 

225,954

1,740

227,693

119,967

99,701

219,668

3.7%

Property taxes, insurance, and other 

17,749

183

17,933

9,546

7,819

17,365

3.3%

 HOTEL EBITDA 

107,400

920

108,320

56,317

42,752

99,069

9.3%

Hotel EBITDA Margin 

30.59%

32.36%

30.60%

29.86%

28.45%

29.48%

1.12%

Minority interest in earnings of consolidated joint ventures 

73

-

73

74

-

74

-1.4%

 HOTEL EBITDA 

excluding minority interest in joint ventures 

$ 107,327

$                  920

$    108,247

$   56,243

$            42,752

$      98,995

9.3%

NOTES:

(1)

The above comparable information assumes the 132 hotel properties owned and included in the Company's operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. 

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(3)

The above information does not reflect the operations of Orlando WorldQuest Resort.

(4)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 ALL HOTELS: 

 Year Ended 

December 31,

Actual

Pre-acquisition

Comparable

Actual

Pre-acquisition

Comparable

Comparable

2015

2015

2015

2014

2014

2014

 % Variance 

 REVENUE 

Rooms 

$ 1,053,576

$            110,947

$ 1,164,523

$   628,451

$            463,715

$ 1,092,166

6.6%

Food and beverage 

226,937

31,276

258,213

111,937

144,304

256,241

0.8%

Other 

47,513

7,450

54,963

26,178

26,397

52,575

4.5%

Total hotel revenue 

1,328,026

149,673

1,477,699

766,566

634,416

1,400,982

5.5%

 EXPENSES 

Rooms 

$    229,615

$              24,771

$    254,386

$   140,996

$            101,448

$    242,444

4.9%

Food and beverage 

153,247

21,436

174,683

77,109

96,477

173,586

0.6%

Other direct 

20,221

2,731

22,952

14,964

7,033

21,997

4.3%

Other indirect  

363,554

44,171

407,725

210,236

181,172

391,408

4.2%

Management fees, includes base and incentive fees 

60,703

5,545

66,248

36,567

25,709

62,276

6.4%

Total hotel operating expenses 

827,340

98,654

925,994

479,872

411,839

891,711

3.8%

Property taxes, insurance, and other

64,201

8,776

72,977

37,612

32,576

70,188

4.0%

 HOTEL EBITDA 

436,485

42,243

478,728

249,082

190,001

439,083

9.0%

Hotel EBITDA Margin 

32.87%

28.22%

32.40%

32.49%

29.95%

31.34%

1.06%

Minority interest in earnings of consolidated joint ventures 

319

-

319

300

-

300

6.3%

 HOTEL EBITDA 

excluding minority interest in joint ventures 

$ 436,166

$            42,243

$    478,409

$ 248,782

$          190,001

$    438,783

9.0%

NOTES:

(1)

The above comparable information assumes the 132 hotel properties owned and included in the Company's operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. 

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(3)

The above information does not reflect the operations of Orlando WorldQuest Resort.

(4)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 HOTEL EBITDA 

 (dollars in thousands) 

 (unaudited) 

 ALL HOTELS: 

NOT UNDER RENOVATION: 

 Three Months Ended 

December 31,

Actual

Pre-acquisition

Comparable

Actual

Pre-acquisition

Comparable

Comparable

2015

2015

2015

2014

2014

2014

 % Variance 

 REVENUE 

Rooms 

$   247,088

$                2,158

$    249,246

$   134,001

$              97,972

$    231,973

7.4%

Food and beverage 

60,928

374

61,302

26,787

34,245

61,032

0.4%

Other 

11,690

311

12,001

5,815

6,092

11,907

0.8%

Total hotel revenue 

319,706

2,843

322,549

166,603

138,309

304,912

5.8%

 EXPENSES 

Rooms 

$     56,509

$                   428

$      56,937

$     31,685

$              22,381

$      54,066

5.3%

Food and beverage 

40,492

233

40,724

18,238

21,901

40,138

1.5%

Other direct 

4,904

87

4,991

3,346

1,609

4,956

0.7%

Other indirect  

89,446

856

90,302

46,875

40,077

86,952

3.9%

Management fees, includes base and incentive fees 

14,337

136

14,474

7,464

5,628

13,092

10.6%

Total hotel operating expenses 

205,688

1,740

207,428

107,608

91,596

199,204

4.1%

Property taxes, insurance, and other 

16,240

183

16,423

8,641

7,213

15,854

3.6%

 HOTEL EBITDA 

97,778

920

98,698

50,354

39,500

89,854

9.8%

Hotel EBITDA Margin 

30.58%

32.36%

30.60%

29.77%

28.56%

29.47%

1.13%

Minority interest in earnings of consolidated joint ventures 

73

-

73

74

-

74

-1.4%

 HOTEL EBITDA 

excluding minority interest in joint ventures 

$   97,705

$                  920

$      98,625

$   50,280

$            39,500

$      89,780

9.9%

NOTES:

(1)

The above comparable information assumes the 119 hotel properties owned and included in the Company's operations at December 31, 2015, but not under renovation during the three months ended December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. 

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(3)

The above information does not reflect the operations of Orlando WorldQuest Resort.

(4)

Excluded Hotels Under Renovation: 

Hilton Parsippany, Courtyard Alpharetta, Fairfield Inn Lake Buena Vista, Historic Inns of Annapolis, Residence Inn Evansville, Crowne Plaza Ravinia, Embassy Suites Austin, Embassy Suites Dulles, Embassy Suites Houston, Hilton Ft. Worth, Hilton Santa Fe, The Ashton, The Churchill

(5)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 ALL HOTELS: 

NOT UNDER RENOVATION: 

 Year Ended 

December 31,

Actual

Pre-acquisition

Comparable

Actual

Pre-acquisition

Comparable

Comparable

2015

2015

2015

2014

2014

2014

 % Variance 

 REVENUE 

Rooms 

$   958,164

$            104,966

$ 1,063,130

$   567,555

$            426,712

$    994,267

6.9%

Food and beverage 

204,163

28,988

233,151

99,556

130,496

230,052

1.3%

Other 

42,703

7,259

49,962

22,916

24,815

47,731

4.7%

Total hotel revenue 

1,205,030

141,213

1,346,243

690,027

582,023

1,272,050

5.8%

 EXPENSES 

Rooms 

$   208,557

$              23,485

$    232,042

$   127,604

$              93,185

$    220,789

5.1%

Food and beverage 

138,865

19,842

158,707

69,264

87,793

157,057

1.1%

Other direct 

18,376

2,670

21,046

13,579

6,858

20,437

3.0%

Other indirect  

327,904

41,575

369,479

187,608

166,187

353,795

4.4%

Management fees, includes base and incentive fees 

55,827

5,292

61,119

33,091

23,618

56,709

7.8%

Total hotel operating expenses 

749,529

92,864

842,393

431,146

377,641

808,787

4.2%

Property taxes, insurance, and other 

58,270

8,305

66,575

33,944

29,732

63,676

4.6%

 HOTEL EBITDA 

397,231

40,044

437,275

224,937

174,650

399,587

9.4%

Hotel EBITDA Margin 

32.96%

28.36%

32.48%

32.60%

30.01%

31.41%

1.07%

Minority interest in earnings of consolidated joint ventures 

319

-

319

300

-

300

6.3%

 HOTEL EBITDA 

excluding minority interest in joint ventures 

$ 396,912

$            40,044

$    436,956

$ 224,637

$          174,650

$    399,287

9.4%

NOTES:

(1)

The above comparable information assumes the 119 hotel properties owned and included in the Company's operations at December 31, 2015, but not under renovation during the three months ended December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. 

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(3)

The above information does not reflect the operations of Orlando WorldQuest Resort.

(4)

Excluded Hotels Under Renovation: 

Hilton Parsippany, Courtyard Alpharetta, Fairfield Inn Lake Buena Vista, Historic Inns of Annapolis, Residence Inn Evansville, Crowne Plaza Ravinia, Embassy Suites Austin, Embassy Suites Dulles, Embassy Suites Houston, Hilton Ft. Worth, Hilton Santa Fe, The Ashton, The Churchill

(5)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

HOTEL REVENUE & EBITDA FOR TRAILING TWELVE MONTHS

(dollars in thousands)

(unaudited)

THE FOLLOWING SEASONALITY TABLE REFLECTS THE 132 HOTELS INCLUDED IN THE COMPANY'S OPERATIONS AT DECEMBER 31, 2015:

Actual

Pre-acquisition

Comparable

Actual

Pre-acquisition

Comparable

Actual

Pre-acquisition

Comparable

Actual

Pre-acquisition

Comparable

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

2015

4th Quarter

4th Quarter

4th Quarter

3rd Quarter

3rd Quarter

3rd Quarter

2nd Quarter

2nd Quarter

2nd Quarter

1st Quarter

1st Quarter

1st Quarter

Total Hotel Revenue

$      351,103

$                2,843

$    353,946

$       362,511

$                8,193

$    370,704

$       367,186

$              29,375

$     396,561

$      247,226

$            109,262

$    356,488

Hotel EBITDA

$      107,400

$                   920

$    108,320

$       116,444

$                3,029

$    119,473

$       128,076

$                9,685

$     137,761

$        84,565

$              28,609

$    113,174

Hotel EBITDA Margin

30.59%

32.36%

30.60%

32.12%

36.97%

32.23%

34.88%

32.97%

34.74%

34.21%

26.18%

31.75%

EBITDA % of Total TTM

24.6%

2.2%

22.6%

26.7%

7.2%

25.0%

29.3%

22.9%

28.8%

19.4%

67.7%

23.6%

JV Interests in EBITDA

$               73

$             -

$              73

$              102

$             -

$            102

$                89

$             -

$               89

$               55

$             -

$              55

Actual

Pre-acquisition

Comparable

2015

2015

2015

TTM

TTM

TTM

Total Hotel Revenue

$   1,328,026

$            149,673

$ 1,477,699

Hotel EBITDA

$      436,485

$              42,243

$    478,728

Hotel EBITDA Margin

32.87%

28.22%

32.40%

EBITDA % of Total TTM

100.0%

100.0%

100.0%

JV Interests in EBITDA

$             319

$             -

$            319

NOTES:

(1)

The above comparable information assumes the 132 hotel properties owned and included in the Company's operations at December 31, 2015 were owned as of the beginning of each of the periods presented. 

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. 

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(3)

The above information does not reflect the operations of Orlando WorldQuest Resort.

(4)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

HOTEL REVPAR BY MARKET

(unaudited)

Three Months Ended December 31,

Number of Hotels

Number of Rooms

Actual

Pre-acquisition

Comparable

Actual

Pre-acquisition

Comparable

Comparable

Region

2015

2015

2015

2014

2014

2014

% Variance

Atlanta, GA Area

11

2,070

$    102.98

$             117.18

$     103.13

$       79.32

$             103.48

$              94.68

8.9%

Boston, MA Area

3

915

154.59

-

154.59

-

157.60

157.60

-1.9%

Dallas / Ft. Worth Area

7

1,518

104.40

-

104.40

96.10

92.64

94.98

9.9%

Houston, TX Area

3

692

106.40

-

106.40

101.11

125.02

111.47

-4.6%

Los Angeles, CA Metro Area

8

1,901

102.89

-

102.89

91.63

81.87

89.52

14.9%

Miami, FL Metro Area

3

587

120.58

-

120.58

117.79

-

117.79

2.4%

Minneapolis - St. Paul, MN-WI Area

4

809

108.54

210.50

121.09

82.59

148.35

106.08

14.1%

Nashville, TN Area

1

673

160.76

-

160.76

-

140.15

140.15

14.7%

New York / New Jersey Metro Area

7

1,887

100.32

-

100.32

116.38

88.56

99.29

1.0%

Orlando, FL Area

6

1,834

87.90

-

87.90

82.00

-

82.00

7.2%

Philadelphia, PA Area

3

648

90.51

-

90.51

77.98

-

77.98

16.1%

San Diego, CA Area

2

410

98.18

-

98.18

87.74

-

87.74

11.9%

San Francisco - Oakland, CA Metro Area

6

1,368

137.33

-

137.33

120.46

-

120.46

14.0%

Tampa, FL Area

3

680

98.89

-

98.89

87.24

79.55

83.31

18.7%

Washington DC - MD - VA Area

10

2,466

112.95

-

112.95

103.80

119.02

107.65

4.9%

Other Areas

55

9,519

96.78

-

96.78

90.15

95.86

92.76

4.3%

Total Portfolio

132

27,977

$  105.56

$           194.05

$     105.94

$     94.69

$           106.30

$              99.20

6.8%

NOTES:

(1)

The above comparable information assumes the 132 hotel properties owned and included in the Company's operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. 

(3)

The above information does not reflect the operations of Orlando WorldQuest Resort.

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

HOTEL EBITDA BY MARKET

(unaudited)

Three Months Ended December 31,

Number of Hotels

Number of Rooms

Actual

Pre-acquisition

Comparable

% of Total

Actual

Pre-acquisition

Comparable

% of Total

Comparable

Region

2015

2015

2015

2014

2014

2014

% Variance

Atlanta, GA Area

11

2,070

$       7,043

$                     99

$        7,142

6.6%

$                1,972

$                3,817

$         5,789

5.8%

23.4%

Boston, MA Area

3

915

5,632

-

5,632

5.2%

-

5,741

5,741

5.8%

-1.9%

Dallas / Ft. Worth Area

7

1,518

6,155

-

6,155

5.7%

3,498

2,099

5,597

5.6%

10.0%

Houston, TX Area

3

692

3,919

-

3,919

3.6%

1,475

2,673

4,148

4.2%

-5.5%

Los Angeles, CA Metro Area

8

1,901

7,072

-

7,072

6.5%

4,778

974

5,752

5.8%

22.9%

Miami, FL Metro Area

3

587

2,540

-

2,540

2.3%

2,510

-

2,510

2.5%

1.2%

Minneapolis - St. Paul, MN-WI Area

4

809

2,905

821

3,726

3.4%

1,913

1,388

3,301

3.3%

12.9%

Nashville, TN Area

1

673

4,727

-

4,727

4.4%

-

3,700

3,700

3.7%

27.8%

New York / New Jersey Metro Area

7

1,887

7,436

-

7,436

6.9%

3,618

3,626

7,244

7.3%

2.7%

Orlando, FL Area

6

1,834

4,913

-

4,913

4.5%

4,516

-

4,516

4.6%

8.8%

Philadelphia, PA Area

3

648

1,709

-

1,709

1.6%

1,382

-

1,382

1.4%

23.7%

San Diego, CA Area

2

410

1,342

-

1,342

1.2%

1,160

-

1,160

1.2%

15.7%

San Francisco - Oakland, CA Metro Area

6

1,368

7,180

-

7,180

6.6%

6,230

-

6,230

6.3%

15.2%

Tampa, FL Area

3

680

2,312

-

2,312

2.1%

1,091

759

1,850

1.9%

25.0%

Washington DC - MD - VA Area

10

2,466

10,314

-

10,314

9.5%

6,508

2,738

9,246

9.3%

11.6%

Other Areas

55

9,519

32,201

-

32,201

29.8%

15,666

15,237

30,903

31.0%

4.2%

Total Portfolio

132

27,977

$ 107,400

$                  920

$    108,320

100.0%

$            56,317

$            42,752

$       99,069

100.0%

9.3%

NOTES:

(1)

The above comparable information assumes the 132 hotel properties owned and included in the Company's operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. 

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(3)

The above information does not reflect the operations of Orlando WorldQuest Resort.

(4)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

HOTEL REVPAR BY MARKET

(unaudited)

Year Ended December 31,

Number of Hotels

Number of Rooms

Actual

Pre-acquisition

Comparable

Actual

Pre-acquisition

Comparable

Comparable

Region

2015

2015

2015

2014

2014

2014

% Variance

Atlanta, GA Area

11

2,070

$    108.61

$             129.52

$     112.57

$       83.24

$             114.18

$           102.91

9.4%

Boston, MA Area

3

915

186.61

101.12

166.08

-

161.10

161.10

3.1%

Dallas / Ft. Worth Area

7

1,518

108.33

115.68

108.75

99.14

100.56

99.62

9.2%

Houston, TX Area

3

692

113.01

115.98

113.23

107.81

119.70

112.97

0.2%

Los Angeles, CA Metro Area

8

1,901

107.68

119.82

108.14

105.04

95.10

102.89

5.1%

Miami, FL Metro Area

3

587

127.33

-

127.33

120.26

-

120.26

5.9%

Minneapolis - St. Paul, MN-WI Area

4

809

107.32

173.81

126.20

95.07

164.73

119.95

5.2%

Nashville, TN Area

1

673

177.93

149.75

172.99

-

152.78

152.78

13.2%

New York / New Jersey Metro Area

7

1,887

110.39

80.38

107.16

122.18

96.42

106.36

0.8%

Orlando, FL Area

6

1,834

91.01

-

91.01

83.38

-

83.38

9.1%

Philadelphia, PA Area

3

648

94.84

-

94.84

90.02

-

90.02

5.3%

San Diego, CA Area

2

410

112.33

-

112.33

101.60

-

101.60

10.6%

San Francisco - Oakland, CA Metro Area

6

1,368

146.54

-

146.54

125.68

-

124.02

18.2%

Tampa, FL Area

3

680

102.04

122.12

103.83

97.02

91.72

94.32

10.1%

Washington DC - MD - VA Area

10

2,466

127.99

91.86

126.39

117.39

126.00

119.57

5.7%

Other Areas

55

9,519

106.45

99.21

105.57

98.03

103.86

100.59

5.0%

Total Portfolio

132

27,977

$  114.25

$           112.52

$     114.08

$   102.30

$           114.62

$           107.08

6.5%

NOTES:

(1)

The above comparable information assumes the 132 hotel properties owned and included in the Company's operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. 

(3)

The above information does not reflect the operations of Orlando WorldQuest Resort.

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

HOTEL EBITDA BY MARKET

(unaudited)

Year Ended December 31,

Number of Hotels

Number of Rooms

Actual

Pre-acquisition

Comparable

% of Total

Actual

Pre-acquisition

Comparable

% of Total

Comparable

Region

2015

2015

2015

2014

2014

2014

% Variance

Atlanta, GA Area

11

2,070

$     24,230

$                6,586

$      30,816

6.4%

$                8,803

$              18,762

$       27,565

6.3%

11.8%

Boston, MA Area

3

915

23,004

2,445

25,449

5.3%

-

24,397

24,397

5.6%

4.3%

Dallas / Ft. Worth Area

7

1,518

24,101

1,946

26,047

5.4%

14,128

8,639

22,767

5.2%

14.4%

Houston, TX Area

3

692

13,025

1,403

14,428

3.0%

6,300

8,185

14,485

3.3%

-0.4%

Los Angeles, CA Metro Area

8

1,901

28,872

1,427

30,299

6.3%

24,030

5,191

29,221

6.7%

3.7%

Miami, FL Metro Area

3

587

11,444

-

11,444

2.4%

10,411

-

10,411

2.4%

9.9%

Minneapolis - St. Paul, MN-WI Area

4

809

10,010

5,858

15,868

3.3%

8,125

6,529

14,654

3.3%

8.3%

Nashville, TN Area

1

673

17,789

2,975

20,764

4.3%

-

17,111

17,111

3.9%

21.3%

New York / New Jersey Metro Area

7

1,887

30,005

1,613

31,618

6.6%

15,521

16,106

31,627

7.2%

0.0%

Orlando, FL Area

6

1,834

20,354

-

20,354

4.3%

17,911

-

17,911

4.1%

13.6%

Philadelphia, PA Area

3

648

7,065

-

7,065

1.5%

7,051

-

7,051

1.6%

0.2%

San Diego, CA Area

2

410

6,631

-

6,631

1.4%

5,634

-

5,634

1.3%

17.7%

San Francisco - Oakland, CA Metro Area

6

1,368

32,058

-

32,058

6.7%

22,166

2,628

24,794

5.6%

29.3%

Tampa, FL Area

3

680

8,983

1,262

10,245

2.1%

4,998

3,958

8,956

2.0%

14.4%

Washington DC - MD - VA Area

10

2,466

45,832

1,122

46,954

9.8%

31,145

12,370

43,515

9.9%

7.9%

Other Areas

55

9,519

133,082

15,606

148,688

31.2%

72,859

66,125

138,984

31.5%

7.0%

Total Portfolio

132

27,977

$ 436,485

$            42,243

$    478,728

100.0%

$          249,082

$          190,001

$     439,083

100.0%

9.0%

NOTES:

(1)

The above comparable information assumes the 132 hotel properties owned and included in the Company's operations at December 31, 2015, were owned as of the beginning of each of the periods presented.

(2)

All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition. 

Adjustments have been made to the pre-acquisition results as indicated below:

(a) Management fee expense was adjusted to reflect current contractual rates

(3)

The above information does not reflect the operations of Orlando WorldQuest Resort.

(4)

See Exhibit 1 for reconciliation of net income (loss) to hotel EBITDA.

 

 

 ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES 

 TOTAL ENTERPRISE VALUE 

DECEMBER 31, 2015

 (in thousands except share price) 

 (unaudited) 

 December 31, 

2015

 End of quarter diluted shares outstanding 

95,471

 Partnership units outstanding (common share equivalents)* 

19,309

 Combined diluted shares and partnership units outstanding 

114,780

 Common stock price at quarter end 

$                   6.31

 Market capitalization at quarter end 

$             724,262

 Series A preferred stock 

$               41,430

 Series D preferred stock 

$             236,718

 Series E preferred stock 

$             115,750

 Debt on balance sheet date 

$          3,868,991

 Joint venture partner's share of consolidated debt 

$               (2,094)

 Net working capital (see below) 

$           (373,036)

Total enterprise value (TEV)

$          4,612,021

Ashford Inc. Investment:

Common stock owned at end of quarter

598

Common stock price at quarter end

$                 53.25

Market value of Ashford Inc. investment

$               31,852

Cash and cash equivalents

$             215,023

Restricted cash

153,535

Accounts receivable, net

40,422

Prepaid expenses

12,455

Investment in AIM REHE, LP

55,952

Due from affiliates, net

(10,516)

Due from third-party hotel managers, net

20,369

Market value of Ashford Inc. investment

31,852

Total current assets

$             519,092

Accounts payable, net & accrued expenses

$             123,378

Dividends payable

22,678

Total current liabilities

$             146,056

Net working capital**

$             373,036

 * Total units outstanding = 20.39 million; impacted by current conversion factor. 

 ** Includes the Company's pro rata share of net working capital in joint ventures. 

 

 

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

Anticipated Capital Expenditures Calendar (a)

2015

Proposed 2016

Rooms

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Actual

Actual

Actual

Actual

Estimated

Estimated

Estimated

Estimated

Hilton Parsippany

354

x

x

x

x

Courtyard Boston Downtown

315

x

x

x

Marriott Beverly Hills

260

x

x

x

Embassy Suites Flagstaff

119

x

x

Hilton Minneapolis

300

x

x

Hyatt Regency Savannah

351

x

x

x

Marriott Bridgewater

347

x

Sheraton Bucks County

186

x

Westin Princeton

296

x

x

Courtyard Palm Desert

151

x

x

Courtyard Scottsdale

180

x

x

Hilton St. Petersburg

333

x

x

x

Residence Inn Hartford

96

x

x

Residence Inn Las Vegas

256

x

x

SpringHill Suites BWI

133

x

x

Hampton Inn Parsippany

152

x

x

x

Sheraton Minnetonka

220

x

Courtyard Alpharetta

154

x

x

Fairfield Inn Lake Buena Vista

388

x

x

Historic Inns of Annapolis

124

x

x

Residence Inn Evansville

78

x

x

Courtyard Overland Park

168

x

Embassy Suites Palm Beach Gardens

160

x

Crowne Plaza Ravinia

495

x

Embassy Suites Austin

150

x

x

x

x

Embassy Suites Dulles

150

x

x

x

Embassy Suites Houston

150

x

x

x

x

Hilton Fort Worth

294

x

Hilton Santa Fe

158

x

x

The Ashton

39

x

x

The Churchill

173

x

x

Hilton Garden Inn Austin

254

x

x

x

SpringHill Suites Jacksonville

102

x

x

x

Courtyard Boston Billerica

210

x

x

Courtyard Irvine Foothill Ranch

156

x

x

Embassy Suites Philadelphia

263

x

x

Residence Inn Fairfax

159

x

x

SpringHill Suites Gaithersburg

162

x

x

Towneplace Suites Manhattan Beach

144

x

x

Renaissance Nashville

673

x

x

x

Courtyard Oakland Airport

156

x

Hilton Nassau Bay

242

x

Embassy Suites Las Vegas

220

x

x

x

Embassy Suites Orlando

174

x

x

x

Marriott Dallas Market Center

265

x

x

x

Courtyard Bloomington

117

x

x

Embassy Suites Dallas

150

x

x

Hampton Inn Lawrenceville

85

x

x

Residence Inn Orlando Sea World

350

x

x

Courtyard Ft. Lauderdale

174

x

x

Crowne Plaza Annapolis

196

x

x

Hilton Garden Inn Virginia Beach

176

x

x

Hyatt Regency Coral Gables

250

x

x

Le Pavillon New Orleans

226

x

x

Marriott Crystal Gateway

697

x

x

Marriott San Antonio Plaza

251

x

x

Courtyard Basking Ridge

235

x

Hampton Inn Gainesville

105

x

Hilton Boston Back Bay

390

x

Marriott Omaha

300

x

(a) Only hotels which have had or are expected to have significant capital expenditures that could result in displacement in 2015-2016 are included in this table.

 

 

Exhibit 1

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Three Months Ended December 31, 2015

Hotel Properties Not Under Renovation

Hotel Properties Under Renovation

Hotel Total

Orlando WorldQuest Resort

Corporate / Allocated

Ashford Hospitality Trust Inc.

Net income (loss)

$          39,904

$            3,401

$          43,305

$                 108

$         (69,540)

$       (26,127)

(Income) loss from consolidated entities attributable to noncontrolling interest

(8)

-

(8)

-

30

22

Net loss attributable to redeemable noncontrolling interests in operating partnership

-

-

-

-

4,113

4,113

Net income (loss) attributable to the Company

39,896

3,401

43,297

108

(65,397)

(21,992)

Non-property adjustments

-

(8)

(8)

-

8

-

Interest income

(9)

-

(9)

-

(14)

(23)

Interest expense

456

-

456

-

47,296

47,752

Amortization of loan cost

116

-

116

-

5,657

5,773

Depreciation and amortization

54,822

6,174

60,996

145

48

61,189

Income tax expense

111

7

118

-

(43)

75

Non-Hotel EBITDA ownership expense

2,378

48

2,426

1

(2,427)

-

(Income) loss from consolidated entities attributable to noncontrolling interest

8

-

8

-

(8)

-

EBITDA including amounts attributable to noncontrolling interest

97,778

9,622

107,400

254

(14,880)

92,774

Less: EBITDA adjustments attributable to consolidated noncontrolling interest

(61)

-

(61)

-

(28)

(89)

Net loss attributable to redeemable noncontrolling interests in operating partnership

-

-

-

-

(4,113)

(4,113)

Equity in earnings of unconsolidated entities

-

-

-

-

(759)

(759)

Company's portion of EBITDA of Ashford Inc.

-

-

-

-

846

846

Company's portion of EBITDA of Ashford Prime

-

-

-

-

-

-

Company's portion of EBITDA of Highland JV

-

-

-

-

-

-

EBITDA attributable to the Company and OP unitholders

$          97,717

$            9,622

$        107,339

$                 254

$         (18,934)

$         88,659

Pre-acquisition Hotel EBITDA 

920

-

920

Comparable Hotel EBITDA

$        98,698

$           9,622

$      108,320

NOTES:

(1)  The above comparable information assumes the 132 hotel properties owned and included in the Company's operations at December 31, 2015, were owned as of the        beginning of each of the periods presented.

(2)  All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

       Adjustments have been made to the pre-acquisition results as indicated below:

 (a) Management fee expense was adjusted to reflect current contractual rates

 

 

Exhibit 1

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Three Months Ended December 31, 2014

Hotel Properties Not Under Renovation

Hotel Properties Under Renovation

Hotel Total

Orlando WorldQuest Resort

Sold Properties

Corporate / Allocated

Ashford Hospitality Trust Inc.

Net income (loss)

$          22,666

$            3,271

$        25,937

$                 233

$                 1

$         (42,529)

$       (16,358)

(Income) loss from consolidated entities attributable to noncontrolling interest

(29)

-

(29)

-

-

289

260

Net loss attributable to redeemable noncontrolling interests in operating partnership

-

-

-

-

-

2,166

2,166

Net income (loss) attributable to the Company

22,637

3,271

25,908

233

1

(40,074)

(13,932)

Non-property adjustments

(4)

-

(4)

-

-

4

-

Interest income

(7)

(1)

(8)

-

-

(9)

(17)

Interest expense

1

-

1

-

-

27,249

27,250

Amortization of loan cost

-

-

-

-

-

1,689

1,689

Depreciation and amortization

26,608

2,590

29,198

137

198

136

29,669

Income tax expense

126

-

126

-

-

320

446

Non-Hotel EBITDA ownership expense

964

103

1,067

1

10

(1,078)

-

(Income) loss from consolidated entities attributable to noncontrolling interest

29

-

29

-

-

(29)

-

EBITDA including amounts attributable to noncontrolling interest

50,354

5,963

56,317

371

209

(11,792)

45,105

Less: EBITDA adjustments attributable to consolidated noncontrolling interest

(43)

-

(43)

-

(32)

(75)

Net loss attributable to redeemable noncontrolling interests in operating partnership

-

-

-

-

-

(2,166)

(2,166)

Equity in loss of unconsolidated entities

-

-

-

-

-

4,299

4,299

Company's portion of EBITDA of Ashford Inc.

-

-

-

-

-

(3,016)

(3,016)

Company's portion of EBITDA of Ashford Prime

-

-

-

-

-

2,494

2,494

Company's portion of EBITDA of Highland JV

-

-

-

-

-

21,803

21,803

EBITDA attributable to the Company and OP unitholders

$          50,311

$            5,963

$        56,274

$                 371

$             209

$          11,590

$         68,444

Pre-acquisition Hotel EBITDA 

39,500

3,252

42,752

Comparable Hotel EBITDA

$        89,854

$           9,215

$      99,069

NOTES:

(1)  The above comparable information assumes the 132 hotel properties owned and included in the Company's operations at December 31, 2015, were owned as of the        beginning of each of the periods presented.

(2)  All pre-acquisition information was obtained from the prior owner. The Company performed a limited review of the information as part of its analysis of the acquisition.

       Adjustments have been made to the pre-acquisition results as indicated below:

 (a) Management fee expense was adjusted to reflect current contractual rates

 

 

Exhibit 1

ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO HOTEL EBITDA

(in thousands)

(unaudited)

Year Ended December 31, 2015

Hotel Properties Not Under Renovation

Hotel Properties Under Renovation

Hotel Total

Orlando WorldQuest Resort

Sold Properties

Corporate / Allocated

Ashford Hospitality Trust Inc.

Net income (loss)

$        180,170

$          18,223

$        198,393

$              1,114

$         (1,303)

$        108,208

$       306,412

(Income) loss from consolidated entities attributable to noncontrolling interest

(90)

-

(90)

-

-

120

30

Net income attributable to redeemable noncontrolling interests in operating partnership

-

-

-

-

-

(35,503)

(35,503)

Net income (loss) attributable to the Company

180,080

18,223

198,303

1,114

(1,303)

72,825

270,939

Non-property adjustments

19,950

-

19,950

-

-

(19,950)

-

Interest income

(34)

-

(34)

-

-

(56)

(90)

Interest expense

1,380

-

1,380

-

-

167,454

168,834

Amortization of loan cost

341

-

341

-

-

18,339

18,680

Depreciation and amortization

188,839

20,646

209,485

564

164

197

210,410

Income tax expense

171

7